Exploring the Future of Web3 and Decentralized Finance: A Conversation with Friederike Ernst
Yazar: This article has been authored by Baran Can Baloğlu, co-founder of OPSV, from the Merkezsiz community.
DappCon, a three-day conference taking place from September 11-13, unites over 900 Ethereum builders, providing invaluable networking opportunities and fostering the exchange of ideas. Hosted by Gnosis since 2018, it is committed to keeping participants informed about the latest trends in the ecosystem while enhancing Berlin's Ethereum landscape in 2023. We were present in Berlin to cover this year's Dappcon conference.
Dappcon 2023 was an exhilarating journey into the heart of Web3 innovation, encapsulating the spirit of blockchain's transformative potential. Amidst a backdrop of vibrant discussions and groundbreaking projects, I had the privilege of engaging in insightful conversations with some of the brightest minds in the blockchain space. This year's focus revolved around utilizing existing infrastructure to build real-life use cases. Emphasizing creating user-centric experiences to facilitate the onboarding of the next 100 million users.
We had the privilege of discussing the exciting prospects for the future of Web3 and decentralized finance (DeFi) with Friederike Ernst, Co-Founder of Gnosis and Gnosis Safe.
Gnosis is steadily building one of the fastest-growing community-run ecosystems in the blockchain space, supported by more than 140,000 validators, enhancing the structure for decentralization and security. Gnosis Chain, with a similar composite architecture to Ethereum, stands out as one of the most decentralized networks, offering the same execution and consensus functions with lower gas fees and faster block processing. With products like Gnosis Pay, a decentralized debit card, and Gnosis Safe, a multi-signature wallet, as well as Gnosis Chain, which is pushing the boundaries of decentralization within the ecosystem, Gnosis is one of the pioneering real-world crypto adoption with innovative products.
Friederike Ernst is a driving force for the enhancement of blockchain decentralization. A physics PhD by training, she is at the forefront of Gnosis Chain, a robust Ethereum Virtual Machine Layer 1 blockchain with over 150,000 validators, emphasizing decentralization and security. Frederike is also a driving force behind Gnosis Pay, the first Decentralized Payment Network (DPN). Additionally, she’s leading the development of Gnosis Wallet, a retail-focused smart contract wallet that harnesses the power of account abstraction to greatly enhance usability. Friederike plays a vital role in the GnosisDAO, which has created numerous essential Ethereum infrastructure solutions like the widely used Safe multisig wallet. Her influence extends to hosting the Epicenter podcast, where she shares valuable insights and fosters blockchain community engagement.
Let's delve into the key insights she shared during our conversation. There is also a surprise announcement regarding what Gnosis will be undertaking as part of the DevConnect event scheduled for November in Istanbul.
Dappcon Experience and Trends
Dappcon was fantastic, focusing on quality over quantity.
Friederike kicked off the interview by sharing her thoughts on Dappcon. She emphasized the event's unique charm, highlighting the high-caliber attendees and discussions. Despite scheduling conflicts with other major blockchain events, Dappcon managed to maintain its appeal by prioritizing builders and meaningful conversations. This year they did their ticket sales over NFTs. Which apparently was a good way to sort out the crowd. Number of attendees was lower then previous years, where the majority of the participants were builders.
Key Trends in Web3
"We're now moving from building infrastructure to creating real-world, user-centric products."
Friederike noted a significant shift in the Web3 landscape. While the initial years were dedicated to laying the groundwork for Web3, the current trend is all about developing tangible, user-focused products. The ultimate aim is to leverage blockchain technology to create products that outshine their Web2 counterparts. A prime example she discussed was Gnosis Pay, a project facilitating direct cryptocurrency payments using a Visa debit card at millions of locations worldwide.
Overcoming Challenges for Mass Adoption
"User experience (UX) and accessibility remain key challenges."
Addressing the challenges of blockchain adoption, Friederike underscored the importance of user-friendly interfaces and experiences. She acknowledged the intimidating nature of private keys and seed phrases for newcomers and stressed the need for improved onboarding processes. The goal is to make blockchain applications as user-friendly as traditional banking apps.
Dealing with Apple's Policy on Web3 Transactions
"Apple's policies clash with the decentralized ethos of Web3."
Friederike delved into the challenges posed by Apple's policies, particularly in relation to Web3 transactions. Apple's business model involves taking a percentage cut of transactions, which directly contradicts the decentralized nature of Web3. She discussed the difficulties of circumventing these policies on Apple's platform compared to Android. To maintain control and flexibility, Gnosis chose to develop Gnosis Wallet as a Progressive Web App (PWA), which offers more freedom outside the Apple App Store.
Technical Challenges and Solutions
"We've addressed many foundational technical hurdles; the focus is now on user-friendly products."
While touching on technical challenges, Friederike mentioned that significant progress has been made in addressing foundational obstacles. The primary emphasis has shifted towards creating user-friendly products. She expressed confidence in the engineering community's ability to tackle issues like scalability using technologies such as ZK-Rollups.
Friederike also shed light on Gnosis' Hashi, a tool designed to enhance the security of bridges between different blockchains. By verifying block headers, Hashi contributes to the safety of cross-chain transactions.
Collaborations and the Path to Real-World Use Cases
"We're collaborating with various Web3 and traditional finance players to bridge the gap."
Friederike highlighted Gnosis' extensive collaborations within the Web3 ecosystem and traditional finance sectors. These partnerships have paved the way for the development of practical blockchain applications that bridge the gap between Web2 and Web3.
One notable partnership is with MakerDAO to enable native issuance of DAI on Gnosis Chain. Additionally, Gnosis is working alongside major payment giants like Visa and Mastercard to offer Gnosis Pay, a groundbreaking product that connects Visa debit cards to self-custodial wallets.
Devconnect Istanbul
Gnosis will be joining this year's Devconnect event in Istanbul where they will be hosting a one day event during the conference week. They will be showcasing their decentralization stack and focusing on privacy and user experience. Check updates about the event on the DevConnect calendar.
Key Takeaways
The Web3 space is transitioning from infrastructure-building to crafting user-centric, real-world products.
User experience (UX) and accessibility challenges persist, necessitating improved onboarding processes.
Technical obstacles are being overcome, with a renewed focus on creating user-friendly products.
Collaborations with Web3 and traditional finance stakeholders are paving the way for practical blockchain applications in everyday life.
In conclusion, Friederike Ernst's insights offer a glimpse into the dynamic developments and challenges within the Web3 and DeFi domains. With a strong focus on user-friendly products and strategic collaborations, Gnosis is poised to drive blockchain technology into mainstream adoption. The future of Web3 holds immense promise, and blockchain-powered products may soon become an integral part of our daily lives.